We're on an Apollo 13 mission: Gen Kranz the Flight Director at the time said,"When bad things happen, we just calmly laid out all the options and failure was not one of them". Tough and competent, "we are forever accountable for what we do or fail to do. We will never take anything for granted. We will never fall short of our knowledge or our skills".

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Sunday, March 23, 2014

Currency of Change with a Touch of Gold

Well at least they use to

In this episode guest, Egon von Greyerz of Matterhorn Asset Management in Switzerland talks about the health of the dollar and gold.As time rolls on and this will be in our history books as to what happen to the economy around the world. It's been a play on the planet's true assets, the energy, precious metals, raw earth material and the land itself. Our game of Monopoly (the economics) is running out of time. You can think of this as a printing press when it stops everyone on the line is trying to fix the stall and get it up and running. The planet is the only true asset of what we have to create any goods that go to market, when these materials run low we have to seek more from other areas, this can cause a war, land grab and the separation of powers that dived other countries. Printing of the money of any country only floats the boat until you can stabilize growth and a true value of a currency. Without that inflation goes through the roof and you need a wheel barrel full of money just to buy bread. No other country will accept your currency for it's worthless. True money comes from loans on interest, income, investments, taxes, trade of imports and exports and of course labor. When your product value becomes unwanted there is no sale, many will have to close the doors, borrow money or Betty Crocker the books until the market improves, you cannot print your own money game over. So the US Dollar is in a tough spot you're already seeing inflation as life is costing more where many are making less. A country needs true assets to improve GDP without it game over. This is the largest game of chess the world has ever seen, many countries are stronger now than before and become better players on the board. Russia, China and others have already created the Eurasia Trade Zone. Russia is an energy mecca and China is a huge manufacturing giant, Asia and Europe need them both and the Yuan is the next currency in line of the dollar. China purchases 50 tons of gold every ten days and has it's own mines. When China goes to reset their currency to a gold standard they will be the new world currency, a currency of change with a touch of gold. Russian companies ramped up production in both mines and gold recycling facilities, cranking out 13.4% more in the first nine months of 2013 than they did during the same period a year earlier. That puts Russia on track for an even bigger jump in gold production than the 6.8% increase in 2012. The world as a whole is tired of the war machine and the printing press, people are starting to wise up and want to see real earnings and real sales within the corporate industry instead of printed money floating the market. Investors are going to need to start seeing both sales and earnings growing in tandem, nearly all stocks are absurdly overvalued and headed for huge plunges dead ahead.